this is ted butler's letter to the inspector general:

Dear Inspector General Lavik;

I’ve written to you on several occasions, including on May 19, 2008, alleging that your agency had conducted a fraudulent investigation into a manipulation of the COMEX silver market. Your Division of Market Oversight (DMO) had issued a detailed public report, dated May 13, 2008, denying that any manipulation existed in the silver market. However, new evidence refutes the DMO report.

This evidence proves the report in 2008 was deeply flawed and perhaps was even intentionally designed to mislead the public. Subsequent data from the Commission, including correspondence to several lawmakers, indicate that a concentrated short position in COMEX silver (and gold) futures, first made visible in the August 2008 Bank Participation Report, came into existence as a result of a takeover by a major US bank of an investment bank. During that time, the only such merger fitting that description was the takeover of Bear Stearns by JPMorgan Chase. Simply put, JPMorgan took over the Bear Stearns’ concentrated short position in COMEX silver (and gold) futures. Additionally, derivatives reports from the US Treasury Department’s Office of the Comptroller of the Currency confirm that JPMorgan Chase took over Bear Stearns’ large and concentrated OTC silver and gold derivatives positions as well.

The takeover of Bear Stearns by JPMorgan took place in March 2008 or almost two months prior to the May 13, 2008 public release of the DMO’s report on large short trader activity in the silver market. It is incomprehensible how the DMO failed to mention the transfer of the largest silver short position on the COMEX in its report on large short trader activity. A reasonable person could only conclude that the DMO acted to intentionally deceive the public or acted with malfeasance in not being aware of basic facts.

The public has been misled by the DMO’s report. In light of JPMorgan’s inheritance of the concentrated short positions of Bear Stearns and the failure of the DMO to acknowledge this in their public report of 2008, I ask you to investigate these circumstances and report on your findings. I plan to post this letter on my website.

Very truly yours,

Ted Butler

http://news.silverseek.com/SilverSeek/1261415180.php